Kodak shares rise after bankruptcy denial

Redazione Reuters

2 IN. DI LETTURA

(Reuters) - Shares of Eastman Kodak EK.N rose more than 35 percent on Monday after the company said it had no intention of filing for bankruptcy.

The company issued a statement on Friday saying it hired the law firm Jones Day which specializes in restructuring, but that it “is committed to meeting all of its obligations and has no intention of filing for bankruptcy.”

Bloomberg reported on Friday the company was considering filing for bankruptcy, which sent shares tumbling. Kodak shares lost more than half their value on Friday.

Kodak shares rose 39 percent, or 30 cents, to $1.10 on Monday. Shares are still trading below levels before the bankruptcy reports surfaced.

Once synonymous with photography, Kodak has struggled with the move to digital cameras and failed to turn a profit since 2007. It has been exploring a sale of its digital imaging patents, worth an estimated $2 billion, and hired investment bank Lazard in July to explore options. It also borrowed $160 million against its credit line last week.